Intel 1Q Net Down 55%; 2Q Rev View In Line With Street
Intel Corp.’s first-quarter net income dropped 55% on lower sales and margins, but Chief Executive Paul Otellini said personal computer sales bottomed out during the quarter and the industry is returning to normal seasonal patterns. I guess it is a good sign that patterns are returning to normal!
Intel, which didn’t provide official guidance citing economic uncertainty and limited visibility, said for internal purposes it was planning for second-quarter revenue to be flat compared with the first quarter. That view is in line with analysts’ estimates. The world’s largest computer-chip maker reported net income of $647 million, or 11 cents a share, down from $1.44 billion, or 25 cents a share, a year earlier. The results included a loss of $113 million on equity investments, compared with a loss of $59 million a year earlier. Revenue dropped to $7.1 billion from $9.67 billion. In January, Intel projected about $7 billion in revenue.
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